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  • Obama is the One Peddling Old Ideas

    Defending his Trillion Dollar Debt Plan, President Barack Obama said critics of his plan were peddling “worn out old ideas” that won’t pull the country out of the recession. But it is Obama’s policies that are worn out and old. And its not just conservatives who are saying that.

    Howard Dean’s campaign manager Joe Trippi Tweets: “Old thinking and why it isn’t working” and links to this Los Angeles Times op-ed by Niall Ferguson: “Keynes Can’t Help Us Now: Governments cling to the delusion that a crisis of excess debt can be solved by creating more debt.” Ferguson writes:

    There is something desperate about the way economists are clinging to their dogeared copies of Keynes’ “General Theory.” Uneasily aware that their discipline almost entirely failed to anticipate the current crisis, they seem to be regressing to macroeconomic childhood, clutching the Keynesian “multiplier effect” — which holds that a dollar spent by the government begets more than a dollar’s worth of additional economic output — like an old teddy bear.

    They need to grow up and face the harsh reality: The Western world is suffering a crisis of excessive indebtedness. Governments, corporations and households are groaning under unprecedented debt burdens. Average household debt has reached 141% of disposable income in the United States and 177% in Britain. Worst of all are the banks. Some of the best-known names in American and European finance have liabilities 40, 60 or even 100 times the amount of their capital.

    The delusion that a crisis of excess debt can be solved by creating more debt is at the heart of the Great Repression. Yet that is precisely what most governments propose to do.

    Posted in Ongoing Priorities [slideshow_deploy]

    3 Responses to Obama is the One Peddling Old Ideas

    1. Ebeth Weidner, North says:

      yep! Old ideas……the change we didn't need. I love Laura's label for this stimulus bill…the spendulus bill…….total BS

      Thanks for all you do for us!!! Your are blogrolled on my blog

    2. Ozzy6900, CT says:

      President Obama admitted himself that he wanted to emulate FDR and that is what is terrible Stimulus Plan is all about! It's the same mistakes from the 1930's with language from 2009! President Obama will need to take an early vacation because he is going to wear himself out talking in circles!

    3. Pingback: Obama is the One Peddling Old Ideas « PaulSwansen’s Weblog

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